TT is a longstanding brand in the knitwear industry has added focus on front retail and brand end of cotton knitwear / hosiery segment. “We have a robust list of products ranging from hi-fashion outerwear products for all genres to innerwear products be it men / women / children. In past years, the company had focussed more on backward integration with exposure in yarn / fabrics for intermediate supplies. Lately we have shifted the focus on to the value-added finished garment segment.” says Sanjay K Jain, MD, TT Ltd.
“The total hosiery market in India is around 25000 crore, growing at the rate of 15 per cent per annum, out of which only around 30 per cent is in the organised sector. So, the potential is huge for any organised player to harness. TT intends to strengthen the distribution network, be it channel sales through MBOs / sales through EBOs / sales through LFSs / online sales,” adds Jain
Offline or online?
Hosiery segment especially innerwear having FMCG nature, is best dealt offline through channel sales in MBOs. Being FMCG, the need is for a geographically penetrated distribution network across the country. To support this format, other ancillary formats of sales through EBOs / LFS sales and online sales are used for urban markets, but rural markets, which account for a major volume in the industry is served through channel sales.
Talking about the online expanse, Jain says, “Online sales are emerging as a promising segment but has the drawback of being restricted to urban literate population who account for a small percentage of the whole sales especially the mass innerwear segments. Online format undoubtedly is a great tool for brand building ultimately appending the channel sales format. We also have a fully integrated online presence for our products serviced through our facilities in Delhi NCR.”
“Online format at best is a supportive sales platform for channel sales. Hence, we peg the price points at the general retail selling price points with a promotional bargain bundled with it. Traditionally a price point ranging at the midpoint of the MRP and wholesale price point is the most ideal fostering a good sales on this format and in turn not cannibalising the channel sales. As online retailing has a cascading brand building impact, therefore we can foresee a robust growth in the knitwear industry as a whole riding on the growth of online sales. Moreover, with the development of mobile online platforms, the reach of the brand is increasing exponentially, contributing immensely to the overall industry as a whole,” he adds.
Expectations from coming season
TT is confident of 25 – 30 per cent growth. Jain highlights, “Constant development work is being done to make new products, particularly in the fashion segment so as to make a strong product basket. All our development in colour palettes / styles / themes are focussed to the youth segment. Our retail presence is growing at a very fast pace with the expansion of our distribution base. We are augmenting our presence simultaneously at all fronts be it EBOs, channel partners. In order to service this growth, we are also augmenting our manufacturing facilities with increase in production capacities of existing facilities and also with a new integrated textile project in Gajraula with manufacturing capacity of around 1 crore pieces per annum. We are expanding our EBOs under the brand of TT Bazaar and hope to reach the century figure in the coming year. Our brand is available in 30,000 MBOs and this is growing every passing day.”